That's correct. ...I'm not 100% comfortable with calling this 23081 version of the 2.5 Manila "ready for prime time". If you're going to keep it on your device and use it, you're going to need to do some work and apply some work arounds to get the basic functions going.

So, you can use the pop settings to sync your email. If you need to sync your contacts, as a work around you might look into bouncing your Hotmail info over to a Gmail account and syncing through Exchange.

Or, wait until the next release, which I'm sure will be coming down the pipe soon enough.